No BS summary of the top stories of the past 24 hours.
- “U.S. stocks will rise marginally in the second half of the year, although any future economic disappointments or deeper uncertainty over President Donald Trump’s agenda could trigger a market pullback, a Reuters poll showed.
- Growth in corporate earnings is expected to continue, allowing for indexes to rise further without raising a red flag of overextended valuations.
- Several poll participants see a correction of at least 10 percent this year as likely, citing also as risks the possibility of an overly aggressive Federal Reserve, further declines in oil prices and less earnings growth than expected.”
- “Yellen this week did absolutely nothing to dispel the notion that the Fed is “on a mission to remove accommodation,” and the other central banks are now beginning to fall in line.”
- “The prospect of four of the world’s five largest central banks moving to tighten policy at the same time is shocking traders after years of easing, with the dislocations in money markets also rippling through global bonds.”
- “Walgreens Boots Alliance announced on Thursday that it entered into an agreement to acquire 2,186 Rite Aid stores and related assets for $5.18 billion in cash.”
- “The U.S. economy slowed less sharply in the first quarter than initially estimated due to unexpectedly higher consumer spending and a bigger jump in exports.
- Gross domestic product increased at a 1.4 percent annual rate instead of the 1.2 percent pace reported last month, the Commerce Department said in its final assessment on Thursday.
- It was still the slowest growth rate since the second quarter of last year.”
- “There are still some question marks about whether bitcoin is in a bubble. But the speed of its price growth is already nearly unmatched.
- The cryptocurrency has surged 162% in very volatile trading this year amid continued demand. But as the chart below illustrates, bitcoin’s longer-term rally by as much as 1,000% was swifter than homebuilder stocks in the lead up to the housing crash.”
- “Bank of America Merril Lynch released a list of what its equity and quant strategy analysts view to be the most “overowned expensive growth stocks.”
- According to BAML, the “overowned” list includes companies that meet the following criteria:1) high projected long-term growth (top decile of the S&P 500 by consensus LTG),
2) expensive on valuation (top quintile of S&P 500 based on average rank of forward P/E, EV/Sales and P/B),
3) overweight by large cap active funds (as of our latest holdings data), and
4) negative 3-month consensus 2017 EPS revisions.”
- Starbucks (SBUX)
- Amazon (AMZN)
- Netflix (NFLX)
- Priceline Group (PCLN)
- Pioneer Natural Resources Company (PXD)
- Regneron Pharmaceuticals (REGN)
- Intuitive Surgical (ISRG)
- Illumina (ILMN)
- Alphabet (GOOGL)
- Facebook (FB)
- Activision Blizzard (ATVI)”
- “Carson Block is short Prothena, predicting one of its key drugs will not be effective.
- “We are short PRTA. The publicly-available data, in our opinion, does not show that NEOD001 is efficacious. Our impression appears to run contrary to that of the sell-side,” said the report on Muddy Waters’ website.”
- “A one-two punch, centered on continued doubts about President Donald Trump’s Wall Street-friendly agenda and hawkishly interpreted comments from global central bankers, is knocking investors around, sparking a surge in yields and sharp swings in currencies.”
- “A global bond selloff continued on Thursday, driving some yields to their highest levels in more than a month, as investors digested messages from central banks this week on rolling back easy-money policies.”